Last year, in the face of the energy crisis, the government imposed a ceiling of +4% on the increase in electricity prices for 2022.
A further intervention took place earlier this month, when the price increase for 2023 was capped at +15%.
The decision to act was made against the backdrop of a recommendation by the electricity and gas markets regulator, the Commission de régulation de l’énergie (CRE), that prices needed to increase by +35% in 2022 and to double in 2023.
The price of a kWh of electricity in France is now €0.2062 per kWh, including taxes, for the EDF 'Tarif de Base', plus an annual standing charge of €143, for a 6 kVA power supply.
The so-called 'bouclier tarifaire' means an extra €20 a month on the average household electricity bill, instead of €180 without the cap in place.
However, the ceiling only applies to regulated tariffs offered by EDF (Engie) and to customers of alternative suppliers who have an offer indexed to the regulated tariff.
For several million households on an unregulated tariff the average annual bill in 2023 will be over €3,000, unless they are on a fixed rate contract. That compares with an average of €1,844 for customers on the regulated tariff.
The graphic below shows the average electricity bill since 2010 for those on the regulated tariff.
The same ceiling is in place for households who use gas. There is also a separate scheme in place for business users.
For those on a low income, the government have also agreed direct financial assistance, in the form of energy vouchers, worth up to €200 depending on income.
You can read more about electricity tariffs in our recently updated Guide to Electricity Services in France.
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